Last night, Trump said he was working to create a clear and simple market framework to enable the United States to dominate Bitcoin and cryptocurrency. The good news caused the market to rise briefly for a while, but it still failed to change the downward rhythm of the market, and the overall market fell in the early morning.
Then came the breaking news in the morning: the situation in the Middle East was turbulent, Israel launched an air strike on Iran, and the cryptocurrency circle was affected by the geopolitical situation and investors’ risk aversion sentiment escalated, causing Bitcoin and Ethereum to plummet!
In the past 24 hours, a total of 250,000 people were liquidated worldwide, with a total liquidation amount of US$1.14 billion, of which US$1.06 billion was liquidated on long orders. Bitcoin fell 2.32% and Ethereum fell 4.53%. The overall market showed a deep correction trend.
Hot news:
1. The number of initial jobless claims in the United States for the week ending June 7 was 248,000, higher than the expected 240,000 and the highest since the week ending October 5, 2024.
2. The U.S. core PPI monthly rate in May was 0.1%, lower than the expected 0.30%. Traders once again fully priced in the Fed's two rate cuts this year.
3. Trump reiterated on Thursday that he did not intend to fire Federal Reserve Chairman Powell, and then he complained again that the Fed did not act quickly enough in cutting interest rates because there was more evidence that inflation was cooling down. He called Powell a fool and called on him to cut interest rates by 200 basis points.
However, the market has largely shrugged off such remarks from Trump. Traders see little chance of a rate cut after the Fed's meeting next week, and little chance of a rate cut at its July meeting.
4. Regarding the China-US negotiations, Trump said that the US and China have reached an agreement
5. Canadian Prime Minister Carney: Progress has been made in trade negotiations between the United States and Canada
6. Trump's birthday military parade will be held on Saturday, and "no king" protests will break out in 2,000 cities across the United States
Tomorrow, Saturday, is a significant day, coinciding with the 250th anniversary of the founding of the U.S. Army, Trump’s 79th birthday and American Flag Day.
Trump previously said that he would "make a big deal" on this day and hold a large-scale military parade. The scale of the event will "surpass the World Cup and the Olympics." Cannons, soldiers and fireworks will be the highlights of the event, aiming to create a "spectacle."
At the same time, Trump's opponents also hope to stage larger-scale protests across the United States on the same day.
7. Israel launched an air strike on Iran, and the cryptocurrency market collectively plunged.
Geopolitical conflicts are like dropping a bomb on the market, causing funds to flee to gold and crude oil for safe havens, resulting in a significant decline in the total market value of the crypto market.
Yumi rebounded and the Silk Road continued to fall from yesterday to now, and the harvest was quite good! The big cake received 7633 points for honey and 577 points for concubine.
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Medium and long term
From a medium to long-term perspective, the long positions above 108,500 were almost liquidated last night.
After experiencing a sharp drop from last night to this morning, Bitcoin and Ethereum began to recover in the afternoon. Bitcoin prices rose to 105,000 and Ethereum rebounded to above 2,500.
After the market plunged in the morning, funds continued to flow into the BTC ETF, indicating that institutional investors were buying at low levels, further enhancing the market's medium- and long-term bullish confidence and pushing prices to form short-term support.
If the market can hold steady at 106,000, the short-term correction may end and the upward trend will intensify.
If the market goes up next week, the weekend may be a good opportunity for bulls to buy at the bottom.
Short term:
At present, the DIF in the hourly MACD crosses the DEA and shows upward signs. The short-term upward trend is strengthened, but the bearish trend in the four-hour and daily lines has not dissipated. We will first look at the main trend and news performance in the evening.
In the short term, the market may fluctuate and adjust after a sharp drop. You can follow the market's short-term high-selling and low-buying operations at 102,500-106,500.
